Customer orders are promised based on the ability to deliver as determined by the availability of materials and capacity. In advanced operations, capacities are often expressed in run rates by line or cell. High-performance production and materials management starts with agreement on sales and production rates as well as the resulting inventory position. Production planning rates flow from the SPI planning process. MRP is used where applicable to plan long leadtime items and expensive materials.
Work orders apply when needed, but are eliminated where possible.
Suppliers and the shop floor are controlled through simplified kanban and surveillance methods.