Ddmrp - Demand Driven Material Requirements Planning

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E-Book 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 is a recommended reading for all those taking the ISCEA Certified Demand Driven Planner (CDDP) Program.

E-Book Content

Demand Driven Material Requirements Planning (DDMRP) Demand Driven Material Requirements Planning (DDMRP) Carol Ptak and Chad Smith INDUSTRIAL PRESS, INC. Industrial Press, Inc. 32 Haviland Street, Suite 3 South Norwalk, Connecticut 06854 Tel: 203-956-5593, Toll-Free: 888-528-7852 E-mail: [email protected] Library of Congress Cataloging-in-Publication Data Names: Ptak, Carol A., author. | Smith, Chad, 1971 – author. Title: Demand driven material requirements planning (DDMRP) / Carol Ptak and Chad Smith. Description: South Norwalk, Connecticut: Industrial Press, Inc., 2016. | Includes bibliographical references and index. Identifiers: LCCN 2016023395 (print) | LCCN 2016026863 (ebook) | ISBN 9780831135980 (hardcover: alk. paper) | ISBN 9780831193843 (eBook) | ISBN 9780831193850 (Epub) | ISBN 9780831193867 (EMobi) Subjects: LCSH: Material requirements planning. | Manufacturing resource planning. | Production control—Data processing. | Inventory control—Data processing. Classification: LCC TS161 .P789 2016 (print) | LCC TS161 (ebook) | DDC 658.5/03—dc23 LC record available at https://lccn.loc.gov/2016023395 ISBN print: 978-0-8311-3598-0 ISBN ePUB: 978-0-8311-9385-0 ISBN eMOBI: 978-0-8311-9386-7 ISBN ePDF: 978-0-8311-9384-3 Copyright © 2016 by Industrial Press, Inc. All rights reserved. This book, or any parts thereof, with the exception of those figures in the public domain, may not be reproduced, stored in a retrieval system, or transmitted in any form without the permission of the copyright holders. Sponsoring Editor: Judy Bass Copy Editor: Judy Duguid Compositor: Patricia Wallenburg, TypeWriting Cover Designer: Janet Romano Murray industrialpress.com ebooks.industrialpress.com 10 9 8 7 6 5 4 3 2 1 The Demand Driven Institute logo is a trademark of the Demand Driven Institute. All rights reserved. The Certified Demand Driven Planner logo is a trademark of the International Supply Chain Education Alliance (ISCEA). All rights reserved. Contents Foreword Definitions in This Book Introduction About the Authors Acknowledgments PART 1 PERSPECTIVE CHAPTER 1 Planning in the New Normal The Material Requirements Planning Revolution Evidence of a Problem Return on Asset Performan
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