In the 1950s, a method called Material Requirements Planning (or “MRP”) changed the world of manufacturing forever. But times have changed—customer tolerance times are shorter, product variety and complexity has increased, and supply chains have spread around the world. MRP is dramatically failing in this “New Normal.”
Demand Driven Material Requirements Planning (DDMRP), Version 3 presents a practical, proven, and emerging method for supply chain planning and execution that effectively brings the 1950s concept into the modern era. The foundation of DDMRP is based upon the connection between the creation, protection, and acceleration of the flow of relevant materials and information to drive returns on asset performance in the New Normal.
Using an innovative multi-echelon “Position, Protect and Pull” approach, DDMRP helps plan and manage inventories and materials in today’s more complex supply scenarios, with attention being paid to ownership, the market, engineering, sales, and the supply base. It enables a company to decouple forecast error from supply order generation and build in line to actual market requirements, and promotes better and quicker decisions and actions at the planning and execution level. DDMRP is already in use by MAJOR Global 1000 companies. This book is THE definitive work on DDMRP, and will be required as courseware for all those taking the Certified Demand Driven Planner (CDDP) Program.
New Features in Version 3
- Full color, with the use in specific, consistent, and focused ways to clearly and effectively highlight planning, execution, and model reconfiguration priorities.
- Expanded Appendix E, looking at the most recent innovations of DDMRP
- Revised graphics scattered throughout the book
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Carol Ptak, CFPIM, CIRM, is a partner with the Demand Driven Institute, and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence. Ms. Ptak is a past president of APICS, and has authored several books on MRP, ERP, Lean, and Theory of Constraints.
Chad Smith, CDDP, is a co-Founder and Partner at the Demand Driven Institute. Prior to the Demand Drive Institute Mr. Smith served as the Managing Partner of Constraints Management Group (CMG) for eighteen years. Mr. Smith has co-authored and contributed to several books on MRP, Theory of Constraints, and the Demand Driven methodology.
PART 1: Perspective:
- Ch 1: Planning in the New Normal
- Ch 2: The Importance of Flow
- Ch 3: Material Requirements Planning (MRP) in the New Normal
- Ch 4: Unlocking a Solution – The Power of Decoupling
PART 2: Becoming Demand Driven
- Ch 5: Supply Order Generation and Execution for the New Normal
- Ch 6: Strategic Inventory Positioning
- Ch 7: Strategic Buffers
- Ch 8: Buffer Adjustments
- Ch 9: Demand Driven Planning
- Ch 10: Demand Driven Execution
- Ch 11: DDMRP Impacts to the Operational Environment
- Ch 12: DDMRP Metrics and Analytics
- Ch 13: The Demand Driven Adaptive Enterprise Model
- Ch 14: Implications for Information Technology
- App A: An MRP Example
- App B: Simulating DDMRP Buffers
- App C: Applying DDMRP to the Apparel Retail Environment
- App D: Demand Driven MRP Dictionary
- App E: The Innovations of DDMRP