Conference - 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 materials 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 commonly referred to as "Push and Promote". These legacy rules and systems are causing significant friction and trade-offs between manufacturers in today's more complex and volatile supply chains. Shortages of critical items must be eliminated while dramatically reducing inventory levels and minimizing shipping expenses. Unfortunately, most of the tools available today are insufficient to effectively address this conflict.

Demand Driven Material Requirement Planning (DDMRP) is a planning methodology that aligns resources, working capital and supply chain planning and execution with actual demand. Through innovative and intuitive approaches and fundamental changes to planning, DDMRP ends the trade-offs and dramatically increases the efficiency of a company's planning organization. The five components are:

1. Strategic positioning of stocks ;

2. Buffer profiles and level determination;

3. Dynamic buffers ;

4. Demand-based scheduling;

5. Highly visible and collaborative execution.

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

 About the speaker : Carol Ptak

Carol Ptak is currently a partner at the Demand Driven Institute. Previously, she was vice president of PeopleSoft and president of APICS. She is the author of 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 :

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

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

• The Beyond MRP site (http://www.beyondmrp.com/) which 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 comprehensive description and explanation of Demand Driven MRP.