"The proposed naming system cannot guarantee to produce unique names and unique names are an essential requirement."
The existing scheme doesn't either.
Unless the 'new' scheme is less than 3 letters per person, it's less likely to produce duplicates than the frankly idiotic 3-letter practice (which has only 18k possible combinations, and since most of those are unlikely to occur ever - just how likely is ZQP, for example? - it's likely to run into duplicates ridiculously quickly).
Scrap both and come up with a sane naming convention.