Demand Driven Material Requirements Planning (DDMRP)

Demand Driven MRP - Conference by Carol Ptak in Paris 21^st March 2013

A new approach to managing your distribution network: Position and Pull.

Transforming Parts and Materials Availability for ERP, Lean and Theory Of Constraints implementation

Traditional material planning and control (ERP/MRP/DRP) are systems in which detailed forecasts are used to procure needed materials and push manufacturing orders through the production and distribution system to the point of consumption. This system is typically called “Push and Promote.” These legacy rules and systems are causing enormous amounts of friction and compromises within and between manufacturers in today’s more complex and volatile supply chains. Shortages of critical items must be eliminated while at the same time inventory levels must be dramatically reduced and expedite related expenses minimized. Unfortunately most of today’s available tool sets are insufficient to effectively resolve this conflict.

Demand Driven Material Requirements Planning is an innovative formal planning methodology that aligns resources, working capital and supply chain planning and execution to actual demand. Through innovative and intuitive approaches and fundamental planning changes DDMRP ends the compromises and dramatically augments the effectiveness of a company’s planning organization. The five components are;

1. Strategic Inventory Positioning;

2. Buffer Profiles and Level Determination;

3. Dynamic Buffers;

4. Demand Driven planning;

5. Highly Visible and Collaborative Execution.

 Demand Driven MRP has already generated very impressive results rapid in FMCG (Unilever, Oregon Freeze Dry,…) and other industries (LeTourneau, Carlisle Brake & Friction, Tube Forgings of America, etc.).

 About the speaker: Carol Ptak

Carol Ptak is currently a partner with the Demand Driven Institute. Previously, she was vice president at PeopleSoft and president of APICS. She has authored several books on MRP, ERP, Lean and Theory of Constraints (TOC) including the latest edition of ‘Orlicky’s MRP’ and ‘Necessary but Not Sufficient’ with Dr. Eliyahu Goldratt.

 If you want to learn more :

• Demand Driven Institute (http://demanddriveninstitute.com/) has a good home page to let you learn more via videos, articles, courses, etc.

• A 10 minute video by Chad Smith co-author of latest edition of Orlicky’s MRP http://www.youtube.com/watch?v=RyFdahcPD5c

• Beyond MRP website (http://www.beyondmrp.com/) that includes 4 white papers on the subject including “New Rules for the 21st Century Supply Chain”.

• Orlicky’s Material Requirements Planning 3rd Edition, by Carol Ptak and Chad Smith, contains the most extensive description and explanation of Demand Driven MRP