About this Presentation
This presentation describes simplified market pull (SMP). SMP is similar to simplified drum-buffer-rope (SDBR) which is an approach for market-constrained manufacturers to reduce lead time and increase capacity. It provides a framework to quickly reduce inventory and lead time and increase profits. SMP can be used in make-to-order and make-to-stock environments to couple supply to demand. Customer demand is the pull or drum to control release of materials to production considering time and inventory buffers. Numerous examples of SMP are provided with results.
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.
Simplified Market Pull (SMP) is an approach that helps market-constrained companies to streamline their inventory, reduce lead time, and increase profits.
SMP uses time buffers and inventory buffers to control the release of work, ensuring that the right jobs are prioritized and completed on time.
Throughput accounting, as opposed to cost accounting, should be used to quote jobs and price stocked items in a SMP approach.
Instructor(s)
