Demand Driven Material Requirements Planning (DDMRP)

by Carol Ptak, Chad Smith

Overview

In the 1950s, a planning method was conceived called “Material Requirements Planning (or MRP).” MRP changed the world of manufacturing forever. But times have changed—customer tolerance times are much 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) is 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.
Using an innovative multi-echelon “Position, Protect, and Pull” methodology, 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. This method 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. Demand Driven Material Requirements Planning is THE definitive work on DDMRP, and will be required as courseware for all those taking the Certified Demand Driven Planner (CDDP) Program.

Features

• THE authoritative work on the emerging DDMRP methodology.
• Provides a clear, concise, and compelling explanation of the breakdown of conventional planning systems.
• Includes immersive and extensive examples that bring DDMRP to life across multiple industries, including vertically integrated supply chains, fast-moving consumer goods (FMCG), heavy fabrication and assembly, and retail and wholesale distribution.
• Features over 300 graphical figures.
• Ptak and Smith are world renowned leaders in the fields of MRP, Theory of Contraints (TOC), Quality Improvement, and Supply Chain Management.

Product Details

ISBN-13:	9780831193850
Publisher:	Industrial Press, Inc.
Publication date:	07/11/2016
Sold by:	Barnes & Noble
Format:	eBook
Pages:	400
File size:	21 MB
Note:	This product may take a few minutes to download.
Age Range:	18 Years

About the Author

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, enterprise resource planning (ERP), Lean, and TOC.

Chad Smith, CDDP, is a co-Founder and Partner at the Demand Driven Institute, and co-Founder and Managing Partner of Constraints Management Group (CMG), a leading implementer of demand driven operational systems for mid-range and large manufacturers and supply chains. Mr. Smith has co-authored and contributed to several books on MRP, TOC, and demand driven performance.
 
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, DDPP, DDLP, ASTP,  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.

Table of Contents

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 Organization • 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: DDS&OP Checklist 
 

Editorial Reviews

What industry experts are saying about Demand Driven Material Requirements Planning (DDMRP)...
 
With the development of DDMRP and now the writing of this book, Ptak and Smith have broken through common practice to bring common sense to supply chain management. If your company is facing variability and uncertainty across your supply chain and the future looks little like the past, then this book holds the answer.
     DDMRP represents the future of planning in today’s complex and volatile supply chains. Inherent flaws in the traditional planning approaches are exposed and resolved for today’s complex adaptive supply chains. With the Demand Driven Adaptive Schema and the pivotal position of Demand Driven Sales and Operations Planning, this is not just a better way to plan; it is a better way to run an organization in today’s hypercompetitive environment. Operations and strategy can now easily and realistically be connected bi-directionally, allowing both to adapt to critical changes for the best return on shareholder equity.
     This book is the ultimate reference for this new way of life across a dynamic adaptive supply chain. —Dick Ling S&OP Consultant  and Author of Orchestrating Success
 

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