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MMP Factsheet

 

The Material Management Portal (MMP) is a decision-support system designed to optimize the inventory management process for manufacturing operations. Using an intuitive design, rooted in the fields of operations research and statistical engineering, and an elegant balancing between hard-core analytical science and soft-core human intervention, the product uses a reorder-point methodology to drastically reduce volatility in inventory levels and optimize the trade-off between service-levels versus inventory levels.

 

Lifecycle Inventory Management

Effective transitioning from a complex MRP-based to an ROP-based lean inventory management system requires a process that is built on clearly defined parameters and supported by a structured analysis tool that incorporates a testing, validating and refining cycle. MMP is an important enabler in achieving drastic inventory improvements; any technology tool, however, needs to improve the entire inventory management lifecycle - policy development, execution, monitoring and adjustment. The realization that a one-size-fits-all approach severely under-optimizes inventory levels is paramount to developing a credible inventory management philosophy. Items need to be grouped into categories according to economics and usage patterns and then pragmatic, learned decisions addressing individual items (and those with similar characteristics) can be applied - this somewhat hybrid, customized approach supported by a decision-support tool can yield far-reaching improvements in working capital.

 

Minimize Volatility

The unfortunate reality of manufacturing settings is the high volatility and standard deviation of demand patterns which are dictated by various exogenous factors. These types of real-world, high volatility environments are exactly the situation where in-place MRP-based systems are dangerously inadequate. Confida's reorder-point technology, developed in concert with subject-matter experts at leading universities, provides a results-based alternative which minimizes inventory volatility dramatically.

 

Service versus Inventory Optimization

The holy grail of inventory management is the struggle and balancing act required to optimize service versus inventory levels. Organizations that are over-attentive to their inventory levels often suffer drastic consequences in customer service and those that pay too much attention to service levels tie up their entire working capital in their inventory stock. MMP achieves this balancing by providing a novel, fact-based decision-support infrastructure which when supported by light human intervention can lead to significant reductions in inventory levels without affecting service levels negatively.

 

ROP-based Lean Inventory Management System

Many current MRP-based inventory management systems result in a "feast-or-famine" predicament - either there is an excessive amount of inventory on-hand or too little of it to meet demand. At Confida, we have developed a lean inventory management system based on reorder-point (ROP) technology that addresses this classic predicament. ROP's buffer-based system allows for a higher margin of error and a more straightforward supplier mapping which when augmented by a powerful business intelligence tool and a pragmatic approach to inventory lifecycle management can yield upwards of 60% improvement in inventory levels.

 

One Size Does NOT Fit All

In the quest for perfect inventory levels, the temptation is to treat all items the same, develop the best general strategy possible and apply it to the entire universe of items. This generic approach unfortunately does not provide impressive results. Instead, using an economically-based framework and supported by a knowledge-base such as MMP, each item's unique characteristics can be identified. This allows the items to be logically divided into separate zones with a customized inventory strategy developed for each. Developing operationally different strategies for managing different segments is not only the most effective use of scarce resources, but in particular, it allows for these resources to be applied where most value will be received. MMP is instrumental in helping process owners actively shepherd inventory groupings and various exceptions in a try-refine-perfect approach that ultimately yields incomparable improvements in inventory levels.

 

Knowledge Discovery

Users of MMP can either select the suite of pre-defined reports or use drill-down and ad-hoc capabilities to quickly formulate their own analyses. Due to the intuitive and elegant interface, it is easy to format various analyses in a process of find-and-discover to isolate root-causes of performance issues. The discovery process and familiarity with business cause-and-affects discourages gut-level, knee jerk reactions and encourages an analytical, fact-based ethos throughout the organization

 

Best-in-class Information Mapping

PMP is designed by business users for business users. As such, we have gone to great effort designing elegant and intuitive charts and graphs that display critical information needed for rapid decision-making. The displays are not bogged down with excess data - just what is needed to understand the situation at-hand (drill-down capability is provided for those users who might need a bit more). We guarantee that you will be impressed with our novel way of mapping and presenting your information.