About this Presentation
Demand Driven Material Requirements Planning (DDMRP) is a multi-echelon supply chain planning and execution methodology protecting and promoting the flow of relevant information and materials with strategically placed stock buffers. First presented by Ptak and Smith in the TOC Handbook and based on flow-based principles, it combines still relevant aspects of MRP and DRP with the pull and visibility emphases of Lean and TOC, Six Sigma's aim for reducing variability, and some innovations to create a supply order generation and management model for today's volatile and complex supply chains requiring short lead times and agility. Companies implementing DDMRP report significant improvements: nearly perfect availability, lower lead times (up to 80%), inventory (30-45%), and cost. Demand Driven concepts have evolved to the full Demand Driven Adaptive Enterprise (DDAE) model, enabling companies to adapt to today's complex and volatile business environment. DDAE uses a constant system of innovation and feedback between three components: a Demand Driven Operating Model (including DDMRP), Demand Driven S&OP and Adaptive S&OP in order to protect and promote the flow of relevant information and materials across the strategic, tactical and operational decision making horizons to drive sustained financial performance. This presentation presents the methodology, its implementation and results. Video length: . PDF: slides.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Modern supply chains are complex adaptive systems, not linear chains. Changes in one part of the system can have unpredictable effects on the whole.
Buffering is a strategy to manage variability in supply chains. Buffers can be stock, capacity, time, skills, or even money, and they serve to protect the flow of materials through the system.
The Demand-Driven Operating Model is a solution to managing complex supply chains. This model uses buffers as guiding mechanisms, and is activated only when there is real customer demand.
Instructor(s)
Christoph Lenhartz
Christoph Lenhartz, MBA, Jonah, TOCICO-certified, Certified Consultant (bdvb), DDPP, DDLP, DDOP, SCOR-P, CSCP, CTSC, CSCA is a TOCICO board ember and past and current Chair of TOCICO. In over 20 years he has acquired a wide-ranging, international experience in industry, as a successful entrepreneur and also a leader of management consulting teams in high complexity TOC implementations. He has lead strategic, business transformation, supply chain management and IT projects and his expertise also includes post-merger integration of supply chain operations for major international groups. One of the leading experts in Europe in TOC and Demand Driven methodologies he is the General Manager of Catena Strategies, a TOC-based consultancy in management and operational excellence. He also serves as Master Instructor for the Demand Driven Institute. He has published articles on TOC, Demand Driven and other management topics in journals such as “Quality Progress” or the prestigious French "Techniques de l'ingénieur" and has translated and written books on TOC and management topics in German. He is an appreciated speaker and teacher of TOC and related topics. Christoph holds an MBA from Clemson University (USA), he graduated from the University Essen (Germany) as a Diplom-Kaufmann and has pursued post-graduate studies at Washington State University (USA).